China sets up organization to help public companies

Edited and Translated by People's Daily Online

The China Association for Public Companies was officially established in Beijing on Feb. 15. Guo Shuqing, chairman of the China Securities Regulatory Commission (CSRC), said that the association will constantly help public companies improve their corporate governance, enhance government supervision, and promote the maturity of China’s capital markets.

Guo said that there are some flaws in the structure of China’s public companies.

First, technological innovations cannot catch up with the development of the capital markets. Practical efforts must be made to provide high-tech companies and small enterprises, especially those start-up companies with equity and bond financing.

Second, the connection between the agricultural sector and capital markets is not close enough. There remains great room for developing more securities and futures products that closely related with agriculture, rural areas, and farmers.

Third, China has not established a stable, mutually beneficial relationship between its social security system and capital markets.